IAC/InterActiveCorp (IAC) Stock Forecast & Price Target

IAC Inc.'s stock outlook is bolstered by the significant growth in its non-sessioned based revenue, which increased by 16% year-over-year in the third quarter, reflecting a marked acceleration in performance marketing growth to 38% year-over-year. Additionally, the company's licensing and other revenue streams have shown consistent growth, with a slight increase to 24% year-over-year, indicating resilience in IAC’s business model. Furthermore, management anticipates a return to positive trends in ad revenue by the fourth quarter and is projecting Care.com to achieve positive year-over-year revenue growth in FY26, underpinning a solid recovery trajectory across its segments.

IAC is facing significant financial challenges, with consolidated revenues of $589.8 million for 3Q reflecting an 8% year-over-year decline, which fell short of consensus expectations. The Care.com segment has seen revenue drop by 5% year-over-year, reflecting tightened spending from employers and resulting in a revised AEBITDA forecast of $45 - 50 million for FY25, down from previous guidance. Additionally, IAC's Print revenues have declined 15% year-over-year, contributing to a negative outlook for the entire portfolio, particularly with rising AEBITDA losses projected across various segments including Emerging & Other and Corporate.